Friday, January 20, 2012
Coastal Contracts Bhd, COASTAL, 5071
Malaysia-based investment holding company with subsidiaries in two segments: vessels manufacturing (fabrication and sale of marine transportation vessels) and repairing services (ship repairs and maintenance, vessels chartering) and equipment hire. Its subsidiaries are Bonafile Shipbuilders & Repairs Sdn. Bhd., Coastal Transport (Sandakan) Sdn. Bhd., Seri Modalwan Sdn. Bhd., Pleasant Engineering Sdn. Bhd., Coastal Marine Pte. Ltd., Coastal Marine Pte. Ltd., Asiapride Sdn. Bhd.Thaumas Marine Ltd, Coastway Transport Sdn. Bhd., Coastal Offshore (Labuan) Pte. Ltd and Ace Capital Pte. Ltd.
Technical Analysis:
After the dividend of 21% at 8 Sept 2011, the stock theme is gone and pull to bottom. After reversal up a symmetrical triangles form with lower highs and higher lows. Based on shape or pattern, they can end up either a continuation of its trend or a reversal pattern. This will be determined by breakout, and it happens today. An upward breakout is a bullish signal, whereas a downward breakout is bearish.
As the pattern forming, volume are contracts. After upside breakout occurs, volume needed to expand to confirm the breakout as you can see in green arrow.
We need to wait the price retrace a bit then fast in fast out. The price will return sometime before the big move of earnest and the breakout point now will turn resistance to be our support level @ 1.95.
The price projection is targeted by measuring the widest distance of the triangle pattern. You can decide to sell the stock in a week @2.18 if the counter is bullish or about half month @2.27 if the price is moving slow and steady to stand above first resistant. Every time a stock success to test resistant, it will become our next support. Watch tightly the contra player pull back the price, this is not a trend reversal, we need to wait them clear their T3 for a price rebound.
Buy and sell Strategy:
Buy below @ 1.95
Cut Lose @1.79
Target Price @2.18 or 2.27
